More than £600,000 has been spent on plans to overhaul Guildford’s North Street, despite no agreement being in place to redevelop the area.

Guildford Borough Council’s executive is expected to sign off on the agreement with its development partner Land Securities, bringing an end to a drawn out negotiation period which has seen costs spiral.

Originally, a final agreement was expected to be made in February, as part of council plans to put in place a plan for the large-scale redevelopment of the town centre area.

However the deadline was not met , with councillors having to intervene in order to reverse an original pledge that rival developers Lend Lease would be consulted.

The council decision to stay with Land Securities was met by a £50,000 payment from the company.

The long-running project has seen legal and consultancy fees eat up its original £500,000 budget, with a projected capital spend of £850,000 set to be approved by the executive.

A total of £370,000 has been spent on consultants alone.

A capital budget of £850,000 has been agreed for the period between 2014/15 and 2018/19. The council will expect to use some of its £25 million asset investment fund to buy properties which fall within the development area.

As the council makes its agreement with Land Securities, the developer must make its own agreement with M&G Real Estate, which owns the Friary Centre.

According to council officers, should the two companies fail to agree terms, the council has the power to wield compulsory purchase order powers to keep the project from stalling further.

'Long held ambition'

Council leader Stephen Mansbridge said: “The regeneration of this key site is a long held ambition for the council and wider community. We are taking a clear approach to drive the scheme forward.

“The completion of the agreement will enable us to work with Land Securities to secure the right development for Guildford and maintain the economic wellbeing of our town centre.”

He added: “We are committed to building a successful relationship with Land Securities and other key stakeholders.

“Land Securities work with landowners, including M&G Real Estate, will help deliver this important scheme.

“The development agreement also allows us to acquire land not already held by the council or M&G Real Estate.

“This will help to move the redevelopment forward within a reasonable period of time.”

Should an agreement be reached at the meeting of the council’s executive on Thursday (April 24), Land Securities will be expected to take possession of the site within six months.

The council will be able to terminate the agreement if the company does not start work within 15 months.

Once work starts on the site, it is projected to be completed within 36 months.

Land Securities was chosen for the project in September 2013, despite the council’s evaluation panel having suggested Lend Lease for the role earlier that year, falling foul of M&G Real Estate, known as Prupim at that time, which preferred the Land Securities bid.

To find out more about the council’s ‘town centre vision’ and to give feedback, visit the